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Gloomy TV trend casts shade on TDC results, shares down
August 10, 2017 / 11:05 AM / 3 months ago

Gloomy TV trend casts shade on TDC results, shares down

Aug 10 (Reuters) - Danish telecoms operator TDC lost more cable TV customers than expected in the second quarter due to intense competition from streaming services, sending its shares 2.2 percent lower.

* Revenue stood at 5.05 billion Danish crowns ($796.00 million) in the quarter, in line with the 5.04 billion expected by analysts. EBITDA came in at 2.06 billion versus the 2.04 billion seen in the Reuters poll.

* TDC lost around 56,000 TV customers compared to second quarter last year.

* Chief financial officer Stig Pastwa said in an interview that customers increasingly preferred streaming instead of cable TV, but that the trend had not intensified.

* TDC also lost around 2,000 mobile telephone customers in the quarter as it warned it would raise subscription charges from July 1, when new regulations to end roaming charges in the European Union were introduced.

* The higher subscription prices were probably part of the reason for the decline, as some customers may have been able to find cheaper subscriptions with limits on data use abroad, Pastwa said.

* “There will of course be customers who don’t think they should have to pay 10 crowns extra to have free roaming if they don’t need it. Some would rather save the money and go somewhere else,” he said.

* TDC still expects the abandonment of roaming fees to cost the company around 150 million Danish crowns ($23.65 million) this year, Pastwa said. ($1 = 6.3442 Danish crowns) (Reporting by Julie Astrid Thomsen, edting by Teis Jensen)

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